THE CLOSING GUIDE / Blog

May 21, 2016

Connecticut Real Estate Closing Customs Explained

Many of Connecticut’s closing practices are taken from the “custom of the bar” in the area in which the property is located. Real estate customs change frequently depending on lender or client demands, and this information is in no way set in stone.
This guide will give you an overview of how residential real property closings are handled in Fairfield, Hartford, Litchfield, Middlesex, New Haven, New London, Tolland, and Windham Counties. The same customs frequently apply to Connecticut commercial closings, but not always.

Where are Connecticut Real Estate Closings Held?

The closing location is usually the office of the purchaser’s attorney, though certain Connecticut counties have different customs.

• Litchfield County

Closings are held at the office of seller’s attorney, unless the lender or lender’s attorney requires a different location.

• New London County

Closings are held at a location chosen by purchaser’s attorney and lender, so long as it is located in New London County. It is the tradition of New London County to allow the sellers and their counsel to leave the closing after they have completed their side of the transaction.

• Tolland County

The closing takes place at the office of the purchaser’s attorney, unless otherwise stated. If the transaction involves only purchase-money financing in favor of the seller, the closing takes place at the office of the seller’s attorney.

• Fairfield County

The closing location is chosen by the purchaser’s attorney and lender. The seller is required to provide a title insurance affidavit and a FIRPTA affidavit at the closing.

Who is Responsible for Connecticut Title Insurance and Document Recording?

In Connecticut, the purchaser’s attorney issues the title insurance policy or policies and usually records the closing documents as well.

How are Closing Expenses and Purchase Prices Paid at a Connecticut Closing?

This varies depending on the county, but in most cases the purchaser tenders to the seller a check payable to the seller’s attorney as Trustee for the purchase price of the property—minus the amount of any mortgage payoff or lien payoffs. In other cases, the purchaser’s attorney collects the funds from the purchaser first, deposits them, and then cuts checks to the seller’s attorney for the lien and mortgage payoffs as well as the purchase price.

Seller’s attorney requiring payment in the form of bank or certified check should notify the issuing attorney or settlement agent in advance to avoid inconvenience and/or delays. In some counties, this warning must be made three days before the closing.

Holler Law Firm: Connecticut Closing Specialists

Holler Law Firm is a Milford-based law firm specializing in the specific title insurance and title disbursement requirements established by Connecticut law. Our goal is to bring business to Connecticut and help national title companies maintain control of their transactions and avoid unnecessary costs and delays at all times. For more information on our services, please visit our homepage today.

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